Glossary
Plain-English definitions of the terms you'll meet when doing business in China — written by our lawyers, not a dictionary.
AEO certification is China Customs' highest corporate credit rating. Certified companies get faster clearance, fewer inspections and reciprocal benefits in dozens of partner countries.
Read more →AQL is the statistical sampling standard (ISO 2859-1) used to decide whether a production batch passes or fails inspection. It defines how many defective units are tolerable in a random sample.
Read more →CIETAC is China's leading international arbitration institution. Foreign companies use CIETAC clauses to get awards that Chinese courts will actually enforce against Chinese counterparties.
Read more →The company chop is the official seal of a Chinese company. A document stamped with the chop generally binds the company — often regardless of who applied it — making chop custody a core control issue.
Read more →Customs IP recordal is the registration of your trademarks, patents or copyrights with China Customs (GACC) so that officers proactively detain suspected infringing shipments at the border.
Read more →A court ruling entered against a party that fails to respond to a lawsuit. In TRO cases, default judgments can result in permanent forfeiture of frozen funds and damages of $50,000 to $2,000,000 per counterfeit work.
Read more →The dishonest debtor blacklist is the Supreme People's Court register of judgment debtors who refuse to comply with court rulings. Listed companies and their legal representatives face travel bans, credit freezes and public shaming.
Read more →Economic compensation is the statutory severance a Chinese employer owes on most terminations: one month's salary per year of service. Unlawful termination doubles it.
Read more →A legal proceeding conducted without the opposing party being present or notified. TRO applications are typically filed ex parte, meaning the court freezes the defendant's assets before they know they've been sued.
Read more →A fapiao is the official tax invoice issued through China's government-controlled invoicing system. It is the only document that proves a transaction for tax purposes — a commercial invoice does not count.
Read more →A legal principle allowing the resale of genuine branded products without the trademark holder's permission, provided the products are not materially altered. A key defense in trademark TRO cases.
Read more →The negative list is China's official catalogue of industries where foreign investment is restricted or prohibited. Any sector not on the list is open to foreign investors on the same terms as domestic ones.
Read more →Federal Rule of Civil Procedure 65 governs injunctions and restraining orders in U.S. federal courts. It sets the requirements for obtaining TROs and preliminary injunctions.
Read more →A free trade zone is a designated area in China with liberalized rules for foreign investment, customs and currency. FTZs apply a shorter negative list and offer bonded logistics advantages.
Read more →The primary U.S. federal statute governing trademarks and unfair competition. Section 1117 provides for statutory damages of $500 to $2,000,000 per counterfeit mark, which is the basis for most TRO damage claims.
Read more →The legal representative is the individual registered as having statutory authority to act for a Chinese company. Their signature can bind the company, and they carry personal exposure for company misconduct.
Read more →A letter of credit is a bank's undertaking to pay the seller once it presents documents that strictly comply with the credit's terms. It replaces trust in the counterparty with trust in a bank.
Read more →An NNN agreement is a China-specific contract that prohibits a counterparty from disclosing, using or circumventing your confidential information. It replaces the Western NDA, which only covers disclosure.
Read more →A China non-compete restricts senior or knowledge-holding employees from joining competitors for up to two years after leaving — but it is only enforceable if the employer pays monthly compensation during the restriction.
Read more →A court order lasting longer than a TRO, requiring a hearing where both sides present evidence. If a TRO defendant does not respond, the TRO is typically converted to a preliminary injunction.
Read more →Processing trade is China's customs regime for importing materials duty-free, processing them into finished goods, and re-exporting them — tracked against a customs handbook of inputs and outputs.
Read more →SAMR is China's market regulator. It registers companies, issues business licenses, enforces competition, advertising and product quality law, and supervises trademarks through the CNIPA system.
Read more →A type of federal lawsuit where the plaintiff sues hundreds of defendants at once, listing them on a sealed 'Schedule A' exhibit. This mass-litigation approach is the most common form of TRO lawsuit against online sellers.
Read more →Damages set by statute rather than calculated from actual harm. Under the Lanham Act, statutory damages range from $500 to $2,000,000 per counterfeit trademark, giving plaintiffs powerful leverage in TRO settlement negotiations.
Read more →Trademark squatting is registering someone else's brand in China before they do. Because China is a first-to-file jurisdiction, the squatter's registration is presumptively valid — and can be used against the real brand owner.
Read more →A court order that temporarily freezes a defendant's assets and prevents certain actions, issued without the defendant's knowledge (ex parte). In e-commerce, TROs are used by brand owners to freeze seller account funds on Amazon and other platforms.
Read more →A free 30-minute consultation. Plain answers about your options, timelines and costs — and an honest view on whether you need a lawyer at all.
